ACC will pay close attention to price hikes by major fuel retailers and “take action” if required.
- Fuel excise from total $0.46 per litre
- This is an increase of 23.9 cents per liter.
- ACC says it will keep an eye on retailers.
The Federal Fuel Excise will be fully reinstated tomorrow.But how will this affect prices at the pump?
To take a simple view, there will be fuel prices Climbing globally by 23.9 cents (Up from 44.2 cents earlier – as fuel excise is CPI-based) As the clock ticks past midnight, the equation is unlikely to be so simple.
46 cents charged on each liter of fuel is a flat tax that forms part of the prices. It is set by the federal government and paid into the federal budget.
On top of the excise is the cost of crude oil, processing and – crucially at the moment – transport. Although RAteliers still have the final say. When it comes to prices.
This was a concern expressed by Australian Automobile Association (AAA) when fuel excise cuts were enacted in March 2022 by former Treasurer Josh Friedenberg.
AAA suggested that fuel retailers could not pass the savings on to consumers.Rather line your pockets with extra earnings. So what’s next?
How much more will fuel cost?
It is very difficult to predict in the current climate. The price of a barrel of crude oil is on a downward trend, yet Australian fuel prices continue to fluctuate with little warning.
Data from the Australian Institute of Petroleum (AIP) shows that, while Last week, a liter of lead was six percent more expensive. The wholesale price actually fell ($1.523 vs. $1.505) for retail buyers ($1.635 vs. $1.739) compared to the week before.
That suggests retailers are easing back into the higher federal fuel excise that hit Wednesday, though wholesale price data is more lagging than retail so it’s not an accurate calculation.
We can be pretty sure that the fuel price will continue to rise, possibly returning to – or possibly breaking through – its March peak of $2.10- for 91 octane in Australia. 2.20 per liter.
But Australian Competition and Consumer Commission (ACC) offered some comfort to consumers in a letter distributed to major fuel retailers last week.
The ACC said it “does not expect any unusual or unusual retail price increases on, on, or in the days following the reintroduction of the full fuel excise rate”.
The consumer watchdog will pay close attention to price hikes by major fuel retailers and said it will “take action” if necessary.
Why was the federal fuel excise reduced?
Fuel excise was cut to ease the pressure on precious lives during Russia’s invasion of Ukraine.
Fuel prices on the rise in March Some time ago the excise was halved.. The kit was penned for six months, with a deadline of 28 September.
Initially it worked, with the retail price of a liter of unleaded petrol falling sharply in mid-April. Gasoline prices rose again through May and June 2022 before falling in August. However, of late, retail prices have been on the rise again.